Stock Index Futures Climb as Bond Yields Stabilize, U.S. PMI Data in Focus

As bond yields stabilized, stock index futures on Wall Street climbed, signaling a rebound from yesterday's selloff. The S&P 500 E-Mini futures (ESU26) rose +0.33%, while Nasdaq 100 E-Mini futures (NQU26) increased by +0.62%. Chipmakers and the Magnificent Seven stocks edged higher in pre-market trading, providing support to the stock index futures. Google is reportedly working with AMD on its new Tensor Processing Unit (TPU), which could have implications for AMD stock.

Treasuries were largely unchanged after their sharp sell-off earlier this week. The 10-year T-note yield dipped 0.5 basis points to 4.70%. However, concerns about the U.S. budget deficit and the potential for high inflation due to elevated oil prices persist, leaving the risk that yields could remain near recent highs or even rise further.

Investor attention now shifts to U.S. business activity data, including the preliminary U.S. Purchasing Managers' Index (PMI) for August. Economists expect the August S&P Global Manufacturing PMI to be 54.0, while the S&P Global Services PMI is projected at 53.9. Following the PMI data release, attention will turn to a packed week, featuring Fed Chairman Kevin Warsh's speech at the Jackson Hole Economic Policy Symposium, Nvidia's earnings report, and the release of the Fed's preferred inflation gauge, the July core personal consumption expenditures price index.